Tuesday, 16 October 2012

Angel Investors give you Wings !!

Angel Investor, when you hear this word it sounds very interesting and 'out of this world'. An angel investor is NOT an investor with golden wings and a halo. Thats only reserved for the Angels on the Victoria Secret fashion show !!
Rather the definition goes like this ... 'An individual who provides startup capital to a new business and expects a percentage of ownership equity in return'. Who knew Angels were so mean, I have always come across them as something soft and cuddly and white except for those Axe adverts where its a whole new dimension altogether !!

Well for starters Angel Investors are not generic they have specialization amongst themselves too. There are like 'n' kinds of them. Lets have a look at some of them and can we find some of their dopplegangers in real life.

Firstly there are these Core Angels who are individuals with extensive business experience who have operated and owned successful businesses of their own.
We can easily find such core Angels here. For Uday Chopra & Jackie Bhagnani they had one since birth, no need to look elsewhere. Read as Dad.

Then come the High-Tech Angels who know less than these Core Angels but will invest significantly in latest trends of modern technology. No .. no .. it does not mean that Chaganbhai Patel is opening a new cyber cafe for his son Jignesh. By the way, haven't cyber cafes gone out of business ? Genuine Question !!

Next come the Return on Investment Angels, these are primarily concerned with the financial reward of their investments. Its the same case with Real Madrid and their 'Galacticos' .. dont perform and you are out the next season. Sometimes even in the same on a loan to a lesser known English club.

Enthusiast Angels are those 65 year old plus who invest just as a mere hobby. They dont take an active role in management but just want to have fun. My idol, his Royal Highness, Sir Hugh Hefner. Enough Said.

Then there are Professional Angels who are professionally employed or own and who invest in companies in their related field. Professional angels invest in several companies at the same time. King of Good Times Mr. Mallya easily fits here .. ohh wait .. he invests in companies and then tries to make it his own field. Slight twist  but almost the same. Please thoda adjust karo !!

Mentor Angels are these individuals who serve as advisors and mentors to their invested companies. One cannot look beyond Mr. Narayan Murthy. No humour here. Next please.

Finally there are these Generational Angels or the Silver Spoons with Silver Wings. These investors are the second generation offspring of successful families and are typically younger than the average angel investor, but have acquired a significant amount of business expertise from working in the family business. With the current scenario in mind, one cannot even think of any other than Mr. Robert Vadra. Second Generation - Check. Not Offspring but heir to successful family - Check. Younger than average - Double Check (He works out baby !!). Significant amount of business expertise from working in the family business alias Corruption - Raised to infinity Check !!

I am still stuck on the first para ... those Angels are way better !! *Nudge Nudge Wink Wink*

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